FIN 48 was issued in July 2006 and requires a company to disclose its uncertain tax positions in the footnotes of its financial statements. The Private Company Financial Reporting Committee (PCFRC) interceded on behalf of nonpublic companies and asked for a deferral to allow nonpublic companies the time to assess how to implement FIN 48. This deferral was requested because many nonpublic companies are not-for-profit and do not pay taxes. The FASB agreed to a one year deferral. The PCFRC then requested that nonpublic companies be exempt from the requirements of FIN 48.

The FASB had proposed to amend the FAS 107 disclosures on financial instruments to include a tabular reconciliation and a pro forma income statement. Due to the outpouring of dissent from the general public, the FASB has decided to remove this FSP from their agenda. They are going to replace it with a new FSP that would require the annual financial instruments disclosures to be reported on a quarterly basis.

The new FSP would be effective for reporting periods ending after March 15, 2009.

We really dodged a bullet with this one.